Claims
Notice of Circumstances
A formal notification provided by the insured to the insurance carrier advising of facts or circumstances that may reasonably be expected to give rise to a future claim. Filing a notice of circumstances during the current policy period can anchor the potential claim to that period, preserving coverage even if the actual claim is not filed until a later date. This is a valuable tool under claims-made policies to protect against the risk of a claim arising after the policy expires.
Related terms
Claims-Made PolicyA type of insurance policy that provides coverage only when a claim is first reported to the insurer...Policy PeriodThe span of time during which an insurance policy provides coverage, defined by a specific inception...Reservation of RightsA written notice from an insurance carrier to its insured stating that the carrier will defend or in...